HomeMy WebLinkAbout6.d. Accept Tort Liability Insurance Limitst
CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: November 21, 2000
AGENDA ITEM: Accept Tort Liability Insurance Limits
AGENDA SECTION:
Consent
PREPARED BY: Jeff May, Finance Director
AGENDA= , 4
6
ATTACHMENTS: Recommendation Letter from Dan
APPROVED BY:
Peterson, Risk Management Consultant; LMCIT Liability
Coverage - Waiver Form
As of 1/1/98, LMCIT has allowed the City to choose between the $300,000/$750,000($1,000,000 as
of 1/1/00) tort cap limit or a new program with a $1,000,000/$1,000,000 limit. Last year the additional
coverage cost the City an added $4,079 a year in premiums. By waiving the statutory tort limit cap
and getting the "better coverage ", the City is better protecting itself in the event of a serious accident
or unusual claim. In switching, the feeling was that the additional $4,000 is money well spent by the
City to protect itself and ultimately, its citizens.
The City Council has to annually take the action to waive the statutory tort liability limits and to accept
the LMCIT's higher coverage. Attached is a form that the Mayor will then have to sign and we will
return to LMCIT for the institution of this coverage. Also attached is a letter from Dan Peterson, our
risk management consultant, recommending that we continue the coverage of
$1,000,000/$1,000,000 for the plan year 12/1/00 through 11/30/01.
RECOMMENDED ACTION:
Motion to waive the monetary limits on tort liability established by Minnesota Statutes 466.04, to
the extent of the limits of the liability coverage obtained from LMCIT.
COUNCIL ACTION:
4
911 18th S:rct North
PO Box 1067
Sr. Cloud, %IN :6303 -1067
320/233 -8616 Fix 3201253 -7696
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October 24, 2000
1;1r . Jaff May
Finance Director
City of Rosemount
2875145"' Street West
Rosemount, MN 55068 -4997
RE: Maximum Liability
Dear Jeff:
As of January 1, 2000, the maximum liability YAthin the scope of Minnesota Statutes Sections
466.01 to 466.15 remained at $300,000 to any claimant but increased to $1,000,000 for any
single occurrence.
When your policy renewed on December 1, 1999, you chose to have your policy provide a
$750,000 per claimant, $750,000 per occurrence limit of liability. On January 1, 2000, the limits
automatically changed to $1,000,000 per claimant, $1,000,000 per occurrence.
I recommend that you continue this increase in limits as it applies to each claimant for the same
I u have pr iou y selected the $600,000 and then the $750,000 per claimant limit
policy re ews o December 1, 2000.
ete n
Manager /Risk Management
3201203 -5523
325731i r- raw eVa wffd w1w n I
Business Consultants : Crr :- cd Public Accountants
LMCIT LIABILITY COVERAGE WAIVER FORM
Cities obtaining liability coverage from the League of Minnesota Cities Insurance Trust must decide
whether or not to waive the statutory tort liability limits to the extent of the coverage purchased. The
decision to waive or not to waive the statutory limits has the following effects:
If the city does not waive the statutory tort limits, an individual claimant would be able to recover no
more than $300,000 on any claim to which the statutory tort limits apply. The total which all claimants
would be able to recover for a single occurrence to which the statutory tort limits apply would be limited
to S 1,000,000. These statutory tort limits would apply regardless of whether or not the city purchases
the optional excess liability coverage.
If the city waives the statutory tort limits and does not purchase excess liability coverage, a single
claimant could potentially recover up to S 1,000,000 on a single occurrence. The total which all
claimants would be able to recover for a single occurrence to which the statutory tort limits apply would
also be limited to $1,000,000, regardless of the number of claimants.
If the city waives the statutory tort limits and purchases excess liability coverage, a single claimant
could potentially recover an amount up to the limit of the coverage purchased. The total which all
claimants would be able to recover for a single occurrence to which the statutory tort limits apply would
also be limited to the amount of coverage purchased, regardless of the number of claimants.
Claims to which the statutory municipal tort limits do not apply are not affected by this decision.
This decision must be made by the city council. Cities purchasing coverage must complete and return
this form to LMCIT before the effective date of the coverage. For further information, contact LMCIT.
You may also wish to discuss these issues with your city attorney.
The City of Rosemount accepts liability coverage limits of $1,000,000 /1,000,000 from the League of
Minnesota Cities Insurance Trust (LMCIT).
Check one:
The city DOES NOT WAIVE the monetary limits on municipal tort liability established by
Minnesota Statutes 466.04.
X The city WAIVES the monetary limits on tort liability established by Minnesota Statutes
466.04, to the extent of the limits of the liability coverage obtained from LMCIT.
Date of city council meeting November 21, 2000
Signature
Position Mayor
Return this completed form to LMCIT, 145 University Ave. W., St. Paul, MN. 55103 -2044
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